17/03/2026
Australian home owners will shortly feel the impact of a second consecutive rate rise, as the Reserve Bank moves to rein in inflation. At its meeting today, the RBA lifted the cash rate by 0.25% to 4.10%, following a similar increase in February. With growing discussion around the risk of another increase in May, which would effectively unwind last year's rate cuts for many households.
Australia’s property market, which gained momentum following last year's rate cuts, is likely to feel some impact from these back to back increases. Domain has noted that national house price growth forecasts of around 5 to 6% for 2026 may now be revised lower. Increased global uncertainty and rate volatility can weigh on buyer confidence and delay seller decisions, particularly in markets like Sydney and Melbourne. For those not yet in the property market, higher rates also mean borrowing power has been reduced, making buying more challenging for First Home Buyers.
From a home loan perspective, this increase is expected to push the average owner occupier variable rate to around 6.01%. As a guide, a 0.25% rise on a $500,000 principal and interest loan over 30 years adds roughly $75 to $80 per month.
We often find periods like this are a good opportunity to review household budgets, cancel unused subscriptions, check utility and internet providers, and make sure everyday expenses are still competitive. Most importantly, it is also a good time to review your home loan and see whether a rate reduction can be requested from your current bank or whether other options are worth considering.
If you would like to talk this through or have us review your loan, feel free to get in touch anytime.
Alex
[email protected]
0413 921 003
Wayne
[email protected]
0407 021 988
